Stock Market Today: On Thursday, most U.S. stocks experienced a rise, but indexes faced stumbling blocks due to significant drops in some influential technology giants. Salesforce, in particular, witnessed its worst trading day in nearly two decades, contributing to the market’s decline.
The S&P 500 retreated 0.6%, losing 31.47 points to close at 5,235.48, despite a majority of stocks within the index and across Wall Street posting gains. Similarly, the Dow Jones Industrial Average fell 0.9%, shedding 330.06 points to settle at 38,111.48.
The Nasdaq composite dropped 1.1%, declining by 183.50 points to end the session at 16,737.08.
Salesforce, a leading provider of customer management solutions, experienced a staggering 19.7% decline in its stock value after reporting weaker revenue for the latest quarter than analysts had anticipated.
The company also provided revenue forecasts for both the current quarter and fiscal year that fell short of Wall Street’s expectations.
Kohl’s, another significant player, plummeted even further by 22.9% following a surprising loss in the latest quarter, contrary to analysts’ projections. The retail giant attributed the loss to decreased sales, particularly in clearance items, prompting a downward revision of its sales forecasts for the year.
Nvidia, despite surpassing analysts’ expectations in its latest profit report, experienced a 3.8% decline, marking its first drop since its significant surge of over 20% following the report last week. The chip company’s decline weighed heavily on the S&P 500.
Stock Market Today: Positive Earnings Reports
Amidst these setbacks, several companies reported better-than-expected profits, providing some support to the market. Best Buy’s stock rose by 13.4% despite falling short on revenue last quarter, while Foot Locker saw a 15% increase following a similar positive profit report.
The bond market also played a role, with easing Treasury yields offering relief to investors after concerns about tepid demand for Treasury bonds earlier in the week. Reports indicating a slightly weaker-than-expected U.S. economy further contributed to the decline in yields.
The upcoming monthly update on inflation from the U.S. government, scheduled for Friday, is anticipated to heavily influence market sentiment. Until then, earnings reports from various companies, particularly in the tech sector, are expected to drive market movements.
However, not all tech-related companies faced negative market reactions. C3.ai and HP saw significant gains after surpassing profit and revenue expectations in their respective latest quarters.
Outside of the U.S., European indexes rose modestly, contrasting with struggles in Asian markets. As the market awaits further economic indicators and earnings reports, investors remain vigilant amidst the mixed performance of U.S. stocks.